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What Explains the Success or Failure of Structural Adjustment Programmes?

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Author Info
Dollar, David
Svensson, Jakob

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Abstract

This paper analyses the causes of success or failure of adjustment programmes, using a new database on 220 reform programmes. We find that the success or failure of reform depends on domestic political-economy forces. A few donor-effort variables are also highly correlated with the probability of success. However, once these effort variables are treated as endogenous, there is no relationship between any of them and the success or failure of reform. These results have clear implications for how the international community should approach policy-based aid.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 110 (2000)
Issue (Month): 466 (October)
Pages: 894-917
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Handle: RePEc:ecj:econjl:v:110:y:2000:i:466:p:894-917

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. Dewatripont, M & Roland, G, 1992. "Economic Reform and Dynamic Political Constraints," Review of Economic Studies, Blackwell Publishing, vol. 59(4), pages 703-30, October. [Downloadable!] (restricted)
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  5. Alesina, A. & Drazen, A., 1991. "Why Are Stabilizations Delayed?," Papers 6-91, Tel Aviv - the Sackler Institute of Economic Studies.
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  6. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March. [Downloadable!] (restricted)
  7. Drazen, Allan & Grilli, Vittorio, 1993. "The Benefit of Crises for Economic Reforms," American Economic Review, American Economic Association, vol. 83(3), pages 598-607, June. [Downloadable!] (restricted)
    Other versions:
  8. Edwards, Sebastian & van Wijnbergen, Sweder, 1986. "The Welfare Effects of Trade and Capital Market Liberalization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 141-48, February. [Downloadable!] (restricted)
  9. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
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  10. Dewatripont, Mathias & Roland, Gerard, 1995. "The Design of Reform Packages under Uncertainty," American Economic Review, American Economic Association, vol. 85(5), pages 1207-23, December. [Downloadable!] (restricted)
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  11. Amemiya, Takeshi, 1979. "The Estimation of a Simultaneous-Equation Tobit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(1), pages 169-81, February. [Downloadable!] (restricted)
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  13. Mariano Tommasi, 1995. "Why Does it Take a Nixon to go to China?," UCLA Economics Working Papers 728, UCLA Department of Economics. [Downloadable!]
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  14. Cukierman, Alex & Liviatan, Nissan, 1992. "The Dynamics of Optimal Gradual Stabilizations," World Bank Economic Review, Oxford University Press, vol. 6(3), pages 439-58, September.
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Wolfgang Mayer & Alex Mourmouras, 2005. "On the Viability of Conditional Assistance Programs," IMF Working Papers 05/121, International Monetary Fund. [Downloadable!]
  2. Robert Lavigne, 2006. "The Institutional and Political Determinants of Fiscal Adjustment," Working Papers 06-1, Bank of Canada. [Downloadable!]
  3. Heckelman, Jac & Knack, Stephen, 2005. "Foreign aid and market-liberalizing reform," Policy Research Working Paper Series 3557, The World Bank. [Downloadable!]
    Other versions:
  4. Espen Villanger, 2003. "Company interests and foreign aid policy: Playing donors out against each other," CMI Working Papers WP 2003:5, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
  5. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Fiscal Discipline and Social Spending in IMF-supported Programs," Public Economics 0504012, EconWPA. [Downloadable!]
  6. Peter Rangazas & Alex Mourmouras, 2004. "Conditional Lending Under Altruism," IMF Working Papers 04/100, International Monetary Fund. [Downloadable!]
  7. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Social Spending in IMF-supported Programs," Public Economics 0504011, EconWPA. [Downloadable!]
  8. Wane, Waly, 2004. "The quality of foreign aid : country selectivity or donors incentives?," Policy Research Working Paper Series 3325, The World Bank. [Downloadable!]
  9. James L. Butkiewicz & Halit Yanikkaya, 2007. "Time-Consistent Polities and Growth in Developing Countries: An Empirical Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(2), pages 306-323, April. [Downloadable!] (restricted)
    Other versions:
  10. Francisco José Veiga, 2003. "The Political Economy of Failed Stabilization," NIPE Working Papers 13/2003, NIPE - Universidade do Minho. [Downloadable!]
  11. Collier, Paul & Dollar, David, 2000. "Can the world cut poverty in half ? how policy reform and effective aid can meet international development goals," Policy Research Working Paper Series 2403, The World Bank. [Downloadable!]
    Other versions:
  12. A. Dalmazzo & Guido De Blasio, 2001. "Resources and Incentives to Reform: A Model and Some Evidence on Sub-Saharan African Countries," IMF Working Papers 01/86, International Monetary Fund. [Downloadable!]
  13. James L.Butkiewicz & Halit Yanikkaya, 2004. "Sociopolitical Instability and Long Run Economic Growth: a Cross Country Empirical Investigation," Working Papers 04-04, University of Delaware, Department of Economics. [Downloadable!]
  14. Almuth Scholl, 2005. "Aid Effectiveness and Limited Enforceable Conditionality," SFB 649 Discussion Papers SFB649DP2005-054, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany, revised Aug 2005. [Downloadable!]
  15. Giulio Federico, 2004. "Samaritans, Rotten Kids and Policy Conditionality," Development and Comp Systems 0409004, EconWPA. [Downloadable!]
  16. Paul Collier & Anke Hoeffler, 2002. "Aid, Policy And Peace: Reducing The Risks Of Civil Conflict," Defence and Peace Economics, Taylor and Francis Journals, vol. 13(6), pages 435-450, January. [Downloadable!] (restricted)
  17. Bigsten , Arne & Kayizzi-Mugerwa, Steve, 2000. "The Political Economy of Policy Failure in Zambia," Working Papers in Economics 23, Göteborg University, Department of Economics. [Downloadable!]
  18. Roland Hodler, 2004. "Redistribution to Rent Seekers, Foreign Aid and Economic Growth," Diskussionsschriften dp0406, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
  19. Philipp Harms & Matthias Lutz, 2004. "The Macroeconomic Effects of Foreign Aid: A Survey," University of St. Gallen Department of Economics working paper series 2004 2004-11, Department of Economics, University of St. Gallen. [Downloadable!]
  20. James M. Boughton & Alex Mourmouras, 2002. "Is Policy Ownership An Operational Concept?," IMF Working Papers 02/72, International Monetary Fund. [Downloadable!]
  21. Espen Villanger, 2003. "Company influence on foreign aid disbursement: Is conditionality credible when donors have mixed motives?," CMI Working Papers WP 2003:4, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
  22. Alvaro Forteza & Martín Rama, 2006. "Labor Market 'Rigidity’ and the Success of Economic Reforms Across More Than 100 Countries," Journal of Policy Reform, Taylor and Francis Journals, vol. 9(1), pages 75-105, March. [Downloadable!] (restricted)
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